European
Communities

Skimmed milk powder(13) for use as animal feed may be exported to third countries:

(a) either after being denatured in the customs territory of the Community in accordance with Article 2:1 of Regulation (EEC) No.
1725/79(14), as last amended by Regulation (EEC) No. 3411/93(15):

“Skimmed milk powder shall be denatured by the addition, per
100 kgs. of skimmed milk powder, of either:

method A:

(i) 9 kgs. of lucerne meal
or grass meal containing at least 50 per cent (m/m) of particles not
exceeding 300 microns; and

(ii) 2 kgs. of starch or
puffed starch,

uniformly distributed in the mixture;

or:

method B:

(i) 5 kgs. of lucerne meal
or grass meal containing at least 50 per cent (m/m) of particles not
exceeding 300 microns; and

(ii) 12 kgs. of fish meal,
non-deodorized or with a strong smell, containing at least 30 per cent
(m/m) of particles not exceeding 300 microns; and

(iii) 2 kgs. of starch or
puffed starch,

uniformly distributed in the mixture;

(b) or after being incorporated in “preparations of a kind used
for animal feeding”, falling within sub-heading ex 23.09.10 and ex
23.09.90 of the common customs tariff, containing skimmed milk powder;

(c) or after being dyed by the following dyeing process:

The dyeing is to be by means of the colouring matters
identified by the Colour Index numbers — most recent edition — and the
designations indicated hereunder.

These colouring matters:

— are to be used alone or in combination, in the form of very
fine impalpable powder and

Finland

Skimmed
milk powder(17) may be exported from the customs territory of Finland
to third countries:

A. Either, after the competent Finnish authorities have ensured that the
skimmed milk powder has been denatured according to any one of the
following processes:

1. By the addition,
per 100 kgs. of skimmed milk powder, of 2.5 kgs. of lucerne meal or
grass meal, containing not less than 70 per cent of particles not
exceeding 300 microns, uniformly distributed throughout the
mixture.

2. By the addition of
finely milled alfalfa flour (98 per cent to pass mesh 60, equivalent
to 50 United States standard), in a proportion of 2 to 4 parts per 100
and of phenolphthalein in proportion of 1:20,000 (1 gr. per 20 kgs. of
milk).

3. By the addition, in
the proportion of 20 per 100 by weight of the product treated (80 per
100 by weight of milk powder and 20 per cent of the denaturing agent)
of a mixture composed of 80 per cent bran and 20 per cent potato
flour, rice flour or other common starch (at least 10 per cent to pass
mesh 60, equivalent to 50 United States standard), with
phenolphthalein in the proportion of 1:20,000.

4. By the addition of,
for each 100 kgs. of skimmed milk powder, a minimum of 35 kgs. of
undeodorized fish meal and 200 grs. of carbonate of iron or sulphate
of iron and:

(a) 1.5 kgs. of activated carbon;

(b) or 100 grs. of mixture
composed of four fifths of yellow tartrazine (E 102) and one fifth of
patent blue V (E 131);

(c) or 20 grs. of
cochineal red A (E 124);

(d) or 40 grs. of patent
blue V (E 131).

5. By the addition of,
for each 100 kgs. of skimmed milk powder, a minimum of 40 kgs. of
undeodorized fish meal and 300 grs. of carbonate of iron or sulphate
of iron.

6. By the addition of,
for each 100 kgs. of skimmed milk powder, a minimum of 4.5 kgs. of
fish oil or fish liver oil and 300 grs. of carbonate of iron or
sulphate of iron.

The
fish meal noted in processes 4 and 5 must contain at least 25 per cent
of particles with dimension below 80 microns. In processes 4, 5
and 6, the iron salts have to contain at least 30 per cent of
particles of a size lower than 80 microns. The colouring matters
have to contain the following percentages of the pure product:

— at least 30 per cent for cochineal red A (E 124);

— at least 25 per cent for the other colouring matters:
colouring matters have to contain at least 30 per cent of
particles having a size lower than 80 microns; the acidity of
fish oil cal­culated in oleic acid has to be equal to at least 10 per cent.

The
products added to skimmed milk powder, according to processes 4, 5 and
6 have to be uniformly distributed as regards in particular the
activated carbon, the iron salts and the colouring matters; two
samples of 50 grs. each, taken at random in a lot of 25 kgs., must
give by chemical determination the same results within the limits of
errors admitted by the analysis method used.

7. Dye to be added to liquid skimmed milk before drying at the rate of
2 to 3 ozs. per
100 gallons of milk (12.5 to 18.7 grs. per hectolitre). The
dye to be one of the following colours:

English
Standard Index Nos.

Lissamine
green

44.090,
42.095, 44.025

Tartrazine

19.140

Combined
with

(a) Brilliant
blue F.C.F.

42.090

or

(b) Green
B.S.

44.090

Cochineal

77.289

Brilliant
blue/F.C.F.

42.090

8. By the addition of meat and bone meal in a proportion of 2 to 4
parts of skimmed milk powder.

The bags or containers in which the denatured powder is packed
will be labelled
“For Animal Feed Only”.

B. Or, after its incorporation in compound or mixed stockfoods of
a kind falling within item 23.09 of the Harmonized System.

Hungary

Directive
No. 14/1981/KkE 14/KKM of the Minister of Foreign Trade

On the implementation of Decree No. 36/1980./3.IX./MT on
the promulgation of the International Dairy Arrangement, done at
Geneva on 12 April 1979.

By virtue of powers conferred by the provisions of Section 3
of Decree No. 36/1980./3.IX/MT on the promulgation of the
International Dairy Arrangement (hereinafter: the Arrangement) — the following are decreed:

Section 1

When importing or exporting products enumerated in Annexes
I-III of the Arrangement, the provisions for minimum prices contained
in the Annexes should be applied by the company authorized to carry on
foreign trade activity, in determining the contents of the foreign
trade contract.

Section 2

The company authorized to carry on foreign trade activity will
be directly informed of modifications effected in the minimum prices
according to paragraph 3(a) of Article 3 of Annex I of the
Arrangement.

Section 3

Skimmed milk powder and buttermilk powder, denatured or
otherwise made unfit for human consumption, for purposes of animal
feed, may be imported also at prices below the minimum price.

Section 4

1. Skimmed milk powder and buttermilk powder, not denatured or
otherwise made unfit for human consumption, can be imported at prices
below the minimum price for purposes of animal feed only. Skimmed milk powder imported at prices below the minimum price
must be denatured or otherwise made unfit for human consumption after
customs clearance, before consumption.

2. Denaturing or otherwise making unfit for human consumption can
be effected by adding meat, bone, blood, fish, lucerne (alfalfa), soya
or other fodder meals, or fats of animal and vegetable origin, or any
other procedure which results in the forage falling under Tariff No.
23.09 of the Trade Customs Tariff.

3. Customs clearance for home use of the dutiable goods specified
in paragraph 1 above can be initiated only at the customs office
regionally competent according to the premises of the company which
carries out denaturing, mixing, or preparation for purposes of animal
feed. The person
presenting the customs declaration should indicate that the purchase
was effected below the minimum price, and should declare that the
dutiable goods will be used for purposes of animal feed only.

4. In the case of a declaration according to paragraph 3 above,
the dutiable goods will be classified by the customs office in heading No. 04.02-03
of the Trade Customs Tariff (“Powdered milk and cream, unfit for
human consumption, whether or not denatured, not containing added
sugar”); and in a
clause inserted on the declaration form, the customs office stipulates
that in accordance with the provisions of the present Directive, it is
prohibited to use the goods before carrying out denaturing or
otherwise making the goods unfit for human consumption.

5. Denaturing or otherwise making the dairy products specified in
paragraph 1 unfit for human consumption must be reported to the
regionally competent customs office not alter than 10 days before
starting the procedure, indicating at the same time the proportion of
materials to be used, the way, place and time of the procedure. On the basis of this notification, denaturing is checked by the
customs office on the premises of the company.

6. If milk powder cleared at the customs with the obligation of
denaturing or otherwise making it unfit for human consumption is used
without fulfilling this obligation, the person concerned will be held
responsible under the law on minor offences, or the criminal law,
according to the specific case.

Section 5

This Directive comes into force on the day of its promulgation.

Appendix to the Hungarian Notification

In Hungary, skimmed milk powder used for animal feeding is
denatured or made unfit for human consumption not in two, but only in
one step because of practical reasons. The denaturing takes place right when mixing or preparing the
animal feedstuff, according to the standards and methods here
attached.

In Hungary the following methods should be applied to prepare
animal feedstuff with the use of skimmed milk powder.

Japan

Based on the provisions of Article 13 of the Customs Tariff
Law, he who wants to import, with customs duty exempted, skimmed milk
powder so as to produce animal feed through mixing the powder
concerned with other materials shall take the following steps so that
the powder concerned will not be diverted to uses other than animal
feed:

1. He shall in advance make an application to the Director of
Customs Office so that his factory be authorized to produce mixed feed
with the duty-exempted skimmed milk powder.

2. When he (himself or through his agent) imports skimmed milk
powder for purposes of animal feed, he shall go through necessary
importation formalities and customs officers at a port of entry shall
keep a record on the quantity of the skimmed milk powder thus
imported.

3. He shall deliver the skimmed milk powder to his factory
authorized under paragraph 1 above and mix it with fish meal,
chrysalis meal or fish soluble.

4. After producing mixed feed, he shall submit, for inspection by
the Customs Office, a report which contains, among others, information
on the quantities of the skimmed milk powder used in the production
and of other materials mixed therewith. The customs officers shall check how much of the quantity
recorded at the time of entry has been used in the production and
inspect the product concerned before its delivery from the factory.

In cases where he violates the control measures mentioned
above, the authorization under paragraph 1 above shall be cancelled
and the exempted customs duty shall be collected according to the
provisions of the Customs Tariff Law. In addition to the above, he shall be fined or imprisoned, as
the case may be, on the ground of the evasion of customs duty as
provided for by the Customs Law.

1. By the addition of
finely milled alfalfa flour (98 per cent to pass mesh 60, equivalent
to 50 United States standard), in a proportion of 2 to 4 parts per 100
and of phenolphthalein in a proportion of 1:20,000 (1 gr. per 20 kgs.
of milk).

2. By the addition, in
the proportion of 20 per 100 by weight of the product treated (80 per
100 by weight of milk powder and 20 per 100 of the denaturing agent)
of a mixture composed of 80 per cent bran and 20 per cent potato
flour, rice flour or other common starch (at least 10 per cent to pass
mesh 60, equivalent to 50 United States standard), with
phenolphthalein in the proportion of 1:20,000.

3. By the addition of, for
each 100 kgs. of skimmed milk powder, a minimum of 35 kgs. of
undeodorized fish meal and 200 grs. of carbonate of iron or sulphate
of iron and

(a) 1.5 kgs. of activated carbon;

(b) or 100 grs. of mixture composed of four fifths of yellow
tartrazine (E 102) and one fifth
of patent blue V (E 131);

(c) or 20 grs. of cochineal red A (E 124);

(d) or 40 grs. of patent blue V (E 131);

(e) or 20 grs. of edicol lime.

4. By the addition of,
for each 100 kgs. of skimmed milk powder, a minimum of 40 kgs. of
undeodorized fish meal and 300 grs. of carbonate of iron or sulphate
of iron.

5. By the addition of,
for each 100 kgs. of skimmed milk powder, a minimum of 4.5 kgs. of
fish oil or fish liver oil and 300 grs. of carbonate of iron or
sulphate of iron.

The fish meal noted in processes 3 and 4 must contain at least
25 per cent of particles with dimension below 80 microns. In processes 3, 4 and 5, the iron salts have to contain at
least 30 per cent of particles of a size lower than 80 microns.
The colouring matters have to contain the following percentages
of the pure product:

— at least 30 per cent for cochineal red A (E 124);

— at least 25 per cent for the other colouring matters:
colouring matters have to contain at
least 30 per cent of particles having a size lower than 80 microns;
the acidity of fish oil calculated in oleic acid has to be equal to at least 10 per
cent.

The products added to skimmed milk powder, according to
processes 3, 4 and 5, have to be uniformly distributed as regards in
particular the acti­vated carbon, the iron salts and the colouring
matters; two samples of 50 grs. each, taken at random in a lot of 25
kgs., must give by chemical determination the same results within the
limits of errors admitted by the analysis method used.

6. By the addition of dye to liquid skimmed milk before drying at
the rate of 2 to 3 ounces per 100 gallons of milk (12.5 to 18.7 grs.
per hectolitre).

Dye to be one of the following
colours:

English
Standard Index Nos.

Lissamine
green

44.090,
42.095, 44.025

Tartrazine

19.140

Combined
with

(a) Brilliant
blue F.C.F.

42.090

or

(b) Green
B.S.

44.090

Cochineal

77.289

Brilliant
blue/F.C.F.

42.090

7. By the addition of meat and bone meal in a proportion of 2:4 parts of
skimmed milk powder.

8. By the addition, per 100 kgs. of skimmed milk powder, of 2.5 kgs. of
lucerne meal or grass meal, containing not less than 70 per cent of
particles not exceeding 300 microns, uniformly distributed throughout
the mixture.

The bags or containers in which the denatured powder is packed will be
labelled “For Animal Feed only”.

9. Incorporation of skimmed milk powder in compound or mixed stockfoods
of a kind falling within item 23.09 of the Harmonized System.

Norway

Skimmed milk powder(20) may be exported from the customs
territory of Norway to third countries:

A. Either, after the competent Norwegian authorities have ensured
that the skimmed milk powder has been denatured according to any one
of the following processes:

1. By the addition, per 100 kgs. of skimmed milk powder, of 2.5
kgs. of lucerne meal or grass meal, containing not less than 70 per
cent of particles not exceeding 300 microns, uniformly
distributed throughout the mixture.

2. By the addition of finely milled alfalfa flour (98 per cent to
pass mesh 60, equivalent to 50 United States standard), in a
proportion of 2 to 4 parts per 100 and of phenolphthalein in a
proportion of 1:20,000 (1 gr. per 20 kgs. of milk).

3. By the addition, in the proportion of 20 per 100 by weight of
the product treated (80 per 100 by weight of milk powder and 20
per cent of the denaturing agent) of a mixture composed of 80 per cent
bran and 20 per cent potato flour, rice flour or other common starch
(at least 10 per cent to pass mesh 60, equivalent to 50 United States
standard), with phenolphthalein in the proportion of 1:20,000.

4. By the addition of, for each 100 kgs. of skimmed milk powder, a
minimum of 35 kgs. of undeodorized fish meal and 200 grs. of carbonate
of iron or sulphate of iron and:

(a) 1.5 kgs. of activated
carbon;

(b) or 100 grs. of mixture composed of four fifths of yellow
tartrazine (E 102) and one fifth of patent blue V (E 131);

(c) or 20 grs. of cochineal red A (E 124);

(d) or 40 grs. of patent blue V (E 131).

5. By the addition of, for each 100 kgs. of skimmed milk powder, a
minimum of 40 kgs. of undeodorized fish meal and 300 grs. of carbonate
of iron or sulphate of iron.

6. By the addition of, for each 100 kgs. of skimmed milk powder, a
minimum of 4.5 kgs. of fish oil or fish liver oil and 300 grs. of
carbonate of iron or sulphate of iron.

The fish meal noted in processes 4 and 5 must contain at least
25 per cent of particles with dimension below 80 microns. In processes 4, 5 and 6, the iron salts have to contain at
least 30 per cent of particles of a size lower than 80 microns. The colouring matters have to contain the following
percentages of the pure product:

— at least 30 per cent for cochineal red A (E 124);

— at least 25 per cent for the other colouring matters: colouring
matters have to contain at least 30 per cent of particles having a
size lower than 80 microns; the
acidity of fish oil calculated in oleic acid has to be equal to at
least 10 per cent.

The products added to skimmed milk powder, according to
processes 4, 5 and 6 have to be uniformly distributed as regards in
particular the activated carbon, the iron salts and the colouring
matters; two samples of
50 grs. each, taken at random in a lot of 25 kgs., must give by
chemical determination the same results within the limits of errors
admitted by the analysis method used.

7. Dye to be added to liquid skimmed milk before drying at the
rate of 2 to 3 ozs. per 100 gallons of milk (12.5 to 18.7 grs. per
hectolitre). The dye to
be one of the following colours:

English
Standard Index Nos.

Lissamine
green

44.090,
42.095, 44.025

Tartrazine

19.140

Combined
with

(a) Brilliant
blue F.C.F.

42.090

or

(b) Green
B.S.

44.090

Cochineal

77.289

Brilliant
blue/F.C.F.

42.090

8. By the addition of meat and bone meal in a proportion of 2 to 4
parts of skimmed milk
powder.

The bags or containers in which the denatured powder is packed
will be labelled “For
Animal Feed Only”.

B. Or, after its incorporation in compound or mixed stockfoods of
a kind falling within item 23.09 of the Harmonized System.

Poland

Skimmed milk powder may be exported from the customs territory
of Poland to third countries:

A. Either, after the competent Polish authorities have ensured
that the skimmed milk powder has been denatured according to any one
of the following processes:

1. By the addition, per 100 kgs. of skimmed milk powder, of 2.5
kgs. of lucerne meal or grass meal, containing not less than 70 per
cent of particles not exceeding 300 microns, uniformly distributed
throughout the mixture.

2. By the addition of finely milled alfalfa flour (98 per cent to
pass mesh 60, equivalent to 50 United States standard), in a
proposition of 2 to 4 parts per 100 and of phenolophtalein in a
proportion of 1:20,000 (1 gr. per 20 kgs. of milk).

3. By the addition, in the proportion of 20 per 100 by weight of
the product treated (80 per 100 by weight of milk powder and 20 per
cent of the denaturing agent) of a mixture composed of 80 per cent
bran and 20 per cent potato flour, rice flour or other common starch
(at least 10 per cent to pass mesh 60, equivalent to 50 United States
standard), with phenolophtalein in the proportion of 1:20,000.

4. By the production of feed milk surrogate MS-93:

Information
on the Production of Feed Milk Surrogate MS-93

(a) Product description:

Feed milk surrogate MS-93 is produced from skimmed milk and
whey in the proportion 1+1, buttermilk powder, animal fat or fat used
for feed milk surrogates, rape-seed or soybean lecithin, vitamins,
mineral salts and antibiotics in the form of Polfamix 1C. Skimmed
milk can be substituted by buttermilk up to 20 per cent.

(b) Quantity composition
of ready product:

— dry fatless matter
— 82.0%

— water not more than
— 5.0%

— fat not less than
— 12.0%

— Polfamix
1C — 1.0%

— rape-seed or soybean lecithin -
ca 0.5%

(c) Quality composition of
ready product:

— acidity not more than 9° SH

— Coli group bacteria absent in 0.01 gr.

— total number of microorganisms in 1 gr. not more than 250,000

(d) Technological
operations:

Production of “MS-93” preparation includes following
operations:

— consolidation
of skimmed milk, whey and buttermilk up to 45-48 per cent
of dry matter,

— dissolution
of lecithin and Polfamix at the temperature of ca 40° C,

— binding
of the mixture with fat components and Polfamix at the
temperature of 70-75° C by intensive mixing in flow,

— drying and packaging.

B. Or, after its incorporation in compound or mixed stockfoods of
a kind falling within item 23.09 of the Harmonized System.

Switzerland

Skimmed milk powder may be exported from the customs territory
of Switzerland to third countries:

A. Either, after the competent Swiss authorities have ensured that
the skimmed milk powder has been denatured according to any one of the
following processes:

1. By the addition, per
100 kgs. of skimmed milk powder, of 2.5 kgs. of lucerne meal or grass
meal, containing not less than 70 per cent of particles not exceeding
300 microns, uniformly distributed throughout the mixture.

2. By the addition of
finely milled alfalfa flour (98 per cent to pass mesh 60, equivalent
to 50 United States standard), in a proportion of 2 to 4 parts per 100
and of phenolphthalein in a proportion of 1:20,000 (1 gr. per 20 kgs.
of milk).

3. By the addition, in the
proportion of 20 per 100 by weight of the product treated (80 per 100
by weight of milk powder and 20 per cent of the denaturing agent) of a
mixture composed of 80 per cent bran and 20 per cent potato flour,
rice flour or other common starch (at least 10 per cent to pass mesh
60, equivalent to 50 United States standard), with phenolphthalein in
the proportion of 1:20,000.

4. By the addition of, for
each 100 kgs. of skimmed milk powder, a minimum of 35 kgs. of
undeodorized fish meal and 200 grs. of carbonate of iron or sulphate
of iron and:

(a) 1.5 kgs. of activated
carbon;

(b) or 100 grs. of mixture
composed of four fifths of yellow tartrazine (E 102) and one fifth of
patent blue V (E 131);

(c) or 20 grs. of
cochineal red A (E 124);

(d) or 40 grs. of patent
blue V (E 131).

5. By the addition of, for
each 100 kgs. of skimmed milk powder, a minimum of 40 kgs. of
undeodorized fish meal and 300 grs. of carbonate of iron or sulphate
of iron.

6. By the addition of, for
each 100 kgs. of skimmed milk powder, a minimum of 4.5 kgs. of
fish oil or fish liver oil and 300 grs. of carbonate of iron or
sulphate of iron.

The fish meal noted in processes 4 and 5 must contain at least
25 per cent of particles with dimension below 80 microns. In processes 4, 5 and 6, the iron salts have to contain at
least 30 per cent of particles of a size lower than 80 microns. The colouring matters have to contain the following percentages
of the pure product:

— at least 30 per cent for cochineal red A (E 124);

— at least 25 per cent for the other colouring matters:
colouring matters have to contain at least 30 per cent of
particles having a size lower than 80 microns; the acidity of fish oil
calculated in oleic acid has to be equal to at least 10 per cent.

The products added to skimmed milk powder, according to
processes 4, 5 and 6 have to be uniformly distributed as regards in
particu­lar the activated carbon, the iron salts and the colouring
matters; two samples of
50 grs. each, taken at random in a lot of 25 kgs., must give by
chemical determination the same results within the limits of errors
admitted by the analysis method used.

7. Dye to be added to liquid skimmed milk before drying at the
rate of 2 to 3 ozs. per 100 gallons of milk (12.5 to 18.7 grs. per
hectolitre). The
dye to be one of the following colours:

English
Standard Index Nos.

Lissamine
green

44.090,
42.095, 44.025

Tartrazine

19.140

Combined
with

(a) Brilliant
blue F.C.F.

42.090

or

(b) Green
B.S.

44.090

Cochineal

77.289

Brilliant
blue/F.C.F.

42.090

8. By the addition of meat
and bone meal in a proportion of 2 to 4 parts of skimmed milk powder.

The bags or containers in which the denatured powder is packed
will be labelled “For Animal Feed Only”.

B. Or, after its incorporation in compound or mixed stockfoods of
a kind falling within item 23.09 of the Harmonized System.

Appendix:
Interpretative
Statements

Japan undertakes to implement the provisions of this Agreement
fully within the limit of its institutional possibilities.

Japan has accepted paragraph 5 of Article 3 of the Annex on the
understanding that advance notification of its intention to make use
of the provisions of that paragraph may be made globally for a given
period and not separately for each transaction.

The Nordic countries have accepted paragraph 3 of Article V of
the Agreement with the understanding that it does not in any way
prejudge their position with regard to the definition of (other than)
normal commercial transactions.

Switzerland has indicated that it is reserving the right to
request at a later date the designation of two or three European ports
as reference points under Article 2 of the Annex in the event that its
exports made this necessary.

New Zealand has indicated that the annual quantities of its
exports under paragraph 2 of Article 7 of the Annex should
normally be of the order of 1 thousand metric tons and could, in
exceptional circumstances, amount to some 2 thousand metric tons.